I should have clarified my initial message: I can deploy the dacpac to SQL Azure correctly from SSMS on my local box - I can even run the script and deploy. But from my deployment server, I am getting the problem.
I suspect that it is due to configuration differences between the 2 machines; it's a Win Server 2008 box but only has SQL Server 2008.
If you are executing the script as-is, please retrieve the exception from $error.Exception.Message. You can recurse this as '$error.Exception.InnerException' etc. to print all the inner details.
2. Most possibly, I think there is a mismatch between your DAC framework bits and other dependent binaries. To be certain of using all the correct binaries, consider upgrading to the following from Denali CTP3 release (http://www.microsoft.com/download/en/details.aspx?id=26726)
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